Foreign direct investment, capital accumulation and economic growth in the Maghrib: empirical findings and implications for regional integration and political stability

2003 ◽  
Vol 8 (2) ◽  
pp. 75-91
Author(s):  
Abdelaziz Testas
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regional Integration ◽  
Capital Accumulation ◽  
Direct Investment ◽  
Political Stability ◽  
Investment Capital

scholarly journals Determinant of FDI Inflows in OIC Countries

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Tania Megasari ◽  
Samsubar Saleh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Direct Investment ◽  
Trade Openness ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Fdi Inflows ◽  
Macroeconomic Variables ◽  
Effect Model

This study aims to analyze the determinants of foreign direct investment (FDI) in the Organization of Islamic Cooperation (OIC) country members for the period 2005 to 2018 The determinant variables of FDI are corruption, political stability and macroeconomic variables such as inflation, exchange rates, economic growth, and trade openness. Analysis used in the study  is the fixed effect model (FEM) of the OIC data panel.The results showed that economic growth and trade openness had a significant influence on foreign direct investment (FDI), while the effects of corruption, political stability, inflation and the exchange rate have no significant effect on foreign direct investment (FDI).

scholarly journals Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the BRICS

2015 ◽  
Vol 9 (12) ◽  
pp. 32 ◽  
Author(s):  
Akhilesh Chandra Prabhakar ◽  
Muhammad Azam ◽  
B. Bakhtyar ◽  
Yusnidah Ibrahim
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Regional Integration ◽  
Direct Investment ◽  
New Paradigm ◽  
Fdi Inflows ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Development Context ◽  
Sustainable Equilibrium

<p class="zhengwen"><span lang="EN-GB">The present study begins by surveying broadly supports the assertion that regional integration in the case of the BRICS is not adequately paid attention except with very few original or significant contributions. This research examines the existing pattern in the areas of trade and investment with a view to locate in the development context. It was also essential to make a theoretical investigation on literature of trade along with the empirical one. The survey broadly supports the frequent, through usually undocumented, assertion that BRICS was an area had tended to neglect and to which they had made few if any original or significant contributions. Alongside, this study panel data on BRICSs, where the results confirm that foreign direct investment (FDI), trade and economic growth indicate the presence of long-run sustainable equilibrium relationship between them. It is thus important that policymakers to remove obstacles to FDI inflows and improve the respective absorptive capacity in order to reap maximize positive growth effects. This study also discussed that how China performed well through attracting FDI inflows and maintained trade balance. </span></p>

scholarly journals Economic Growth Model and Foreign Direct Investment: Evidence from Albania

2020 ◽  
Vol 4 (1) ◽  
pp. 45
Author(s):  
Llesh Lleshaj ◽  
Bezo Lorena - Balili
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
New Technologies ◽  
Domestic Investment ◽  
Macroeconomic Factors ◽  
Economic Productivity ◽  
Economic Growth Model ◽  
Investment Capital ◽  
Multifactor Regression

Background: A number of reasons are expressed about the importance of foreign direct investment (FDI) in developing countries. FDI increases the investment capital in the host country and transferring of new technologies, conducts the distribution and enlarges the economic productivity, improves the level of competitiveness and exports, develops new markets, etc. Objectives: In this research, the main objective is the economic growth (GDP) analysis in Albania affected by FDI flows and the other fundamental macroeconomic factors of growth/productivity. Methods/Approach: The data in this analysis are time series with quarterly frequencies from 1997 to 2018. The econometric model estimation is multifactor regression of the expanded Solow's model. Statistical approach base on logarithm and first-order stationarity. Results: Economic growth is a simultaneous phenomenon of FDI, domestic investment, the scale of economic openness (focusing on exports), the aggregate average salary, and the efficient use of public debt, especially external debt. Conclusions: FDI flows are the main factor in total economic productivity, and have a larger contribution to the gross domestic product than domestic investment, per unit invested capital, in Albania.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI “CAPITAL FLIGHT” DI INDONESIA (Period Kuartal I 1990 s.d. Kuartal IV 2000)

2004 ◽  
Vol 6 (2) ◽  
pp. 12-31
Author(s):  
Navik Istikomah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Exchange Rates ◽  
Stability Condition ◽  
Direct Investment ◽  
External Debt ◽  
Political Stability ◽  
Capital Flight ◽  
Series Data

The purpose of this research is to identify the problems of the effect of economic variables, that is,  changes of exchange rates Rp/US$, external debt, economic growth, inflation, differences of interest rate of Indonesian- America, Foreign Direct Investment, political stability condition, on capital flight in Indonesia, for period 1st quarter, 1990 – 4th quarter, 2000. The determinants of capital flight in Indonesia use cointegration equation model of Likelihood Johansen’s. The estimation completed by time series data validity, that is, unit-roots-test and co-integration-test.The result of research indicate that independent variable on model, that is, changes of exchange rates Rp/US$, external debt, economic growth, inflation, differences of interest rate of Indonesian-America, Foreign Direct Investment, and political stability condition, on the long run could explain changes of capital flight about 58,85 percent and altogether significant (computed-F = 7,1520 > value-F = 3,192). Partially, knowed that all variable on model, exceptly inflation and differences of interest rate of Indonesia-America, to have significant influence on capital flight in Indonesia. All variable sufficient stationery-condition at first different and the model could cointegrated at first different.Keywords: Capital Flight and determinant factors, and Cointegration of Johansen’s Likelihood

scholarly journals Savings, Investment & FDI Contribution To Malaysian Economic Growth In The Globalization Era

2011 ◽  
Vol 2 (8) ◽  
Author(s):  
Kasim Mansur ◽  
Markos Mamalakis ◽  
Sidah Idris
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Capital Accumulation ◽  
Direct Investment ◽  
World Economy ◽  
Full Employment ◽  
Economic Transformation ◽  
Solow Model ◽  
Pull Out ◽  
The World

What are the prospects and future of Foreign Direct Investment (FDI) in Malaysia now? Malaysia is undoubtedly a development success story. Throughout the post-independence period since 1957, Malaysia has enjoyed rapid economic growth with rising per capita income and price stability. Rising living standards, greater urbanization and access to health and education, and an improvement in the distribution of income have accompanied economic growth. Malaysian performance has been particularly remarkable after 1987 when the economy achieved above 7 per cent growth in seven consecutive years reaching virtual full employment in 1995. Malaysia now aspires to become a fully developed economy by 2020. This dramatic economic transformation has occurred against a background of massive shifts in the world economy as a result of increasing internationalization of production and trade. Foreign investment funds are returning to the market attracted by the corporate restructuring news and a belief that South East Asian stocks are generally undervalued. But FDI remains a big worry for the government and the last quarter figures cannot have helped. A recent survey by the Japanese Chamber of Trade and Industry in Malaysia claimed that the country no longer enjoyed a competitive advantage over its neighbors and that 22 per cent of Japanese companies operating in Malaysia were contemplating moving. In Penang more multinationals in the electronic sectors are planning to pull out of Malaysia in the next few months and relocate to China and Vietnam. So far these have all been in factories producing labor-intensive products. The main reason given for relocation is because of high labour costs. The purpose of this paper is to examine the Malaysian economic growth with emphasize on saving and investment in the context of globalization of the world economy. The main issues are: 1. Malaysian economic and Fiscal policy to stimulate economic growth. 2. The key policy shifts to guide the study of globalization and developmental implications to overall growth trends. 3. The role of foreign direct investment (FDI) and the implications of globalization for domestic employment and real wages, and poverty and income inequality.From our analysis we found that economic development in Malaysia can be seen as a variant of the Solow model, in which savings, investment and capital accumulation are the major agents of growth. One aspect of the fast factor accumulation in this country is the important of FDI flows as a source of technology and management skills. FDI vis a vis savings and investment may have triggered export competitiveness by improving the technology, management and marketing of export industries.

scholarly journals Regional Foreign Direct Investment Potential in Selected African Countries

2019 ◽  
Vol 11 (10) ◽  
pp. 66
Author(s):  
Philip Agyei Peprah ◽  
Yao Hongxing ◽  
Jean Baptiste Bernard Pea-Assounga
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Capital Accumulation ◽  
Direct Investment ◽  
Fiscal Decentralization ◽  
African Countries ◽  
Foreign Reserve ◽  
Long Run ◽  
Short Run ◽  
Investment Growth

The recent devolutionary trend across the world has been in part fuelled by claims of a supposed &lsquo;economic growth by direct investment dividend&rsquo; associated with the fiscal decentralization. There is however, little empirical evidence to substantiate these claims. Most prior research has determined different research techniques of measurement by generating mix results. More so, these studies do not differentiate between short and long run techniques and mechanisms through which county expenditure affects economic growth, by investment growth, and by foreign reserve of African countries. The background has investigated empirically the short and long run techniques effect of components of county expenditure on economic growth investment, by foreign direct investment growth in the African countries in period of 2013 to 2017. The variables tested by unit root by no stationary at interval levels. The long and short run of variables computed by ARDL methods by Keynesian theory. However, the budget allocation and execution improved to capital infrastructure and like transport communication help to improve private capital accumulation and economic growth.

scholarly journals Quest for Sustainable Growth, Does Foreign Direct Investment Still Matter? Evidence in Africa

2019 ◽  
Vol 7 (4) ◽  
pp. 397-409
Author(s):  
Adewosi, O. Adegoke ◽  
Manu Donga ◽  
Adamu Idi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Developing Economies ◽  
Negative Impact ◽  
Political Stability ◽  
Fixed Effect Model ◽  
Sustainable Growth ◽  
Domestic Investment ◽  
African Countries

The debate on the role of Foreign Direct Investment in promoting rapid growth and development of the developing economies remain inconclusive. This paper examined whether FDI still matters in African Countries over the period of 1990 to 2017, with the proper utilization of panel data estimation technique on the annual country data that were sourced from world Governance and Development Indicators. Using random and fixed effect model, the results reveal that some important variables such as coefficient of trade openness, rule of law, political stability, capital formation and population positively determined economic growth in Africa countries, account for about 2, 1, 65, 170, and 396.7 percent increase in economic growth. While, FDI and inflation were found to have negative impact on economic growth accounting for 21.4 and 2 percent fall in economic growth over the study period. The study then recommends amongst others formulation and implementation of policies that encourage domestic investment in the continents.

scholarly journals The Relationship of Economic Growth and Foreign Direct Investment on Financial Development: Empirical Evidence from Palestine

2021 ◽  
pp. 14-35
Author(s):  
Nemer Badwan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Financial Development ◽  
Capital Accumulation ◽  
Direct Investment ◽  
Output Growth ◽  
The Impact ◽  
The Relationship

Purpose: The purpose of this research is to investigate the impact and current link between economic growth and foreign direct investment (FDI) on financial development in Palestine, as well as the role of financial development in influencing this relationship. Design/Methodology/Approach: The logical reasoning approach associated with quantitative research was applied in this study, which was backed up by experience and positivism as philosophical viewpoints. Data on economic growth indicators, foreign direct investment (FDI), financial development, and other control variables were also used, spanning the years (1998 to 2019). To determine whether there is an effect and a relationship between economic growth, foreign direct investment (FDI), and financial development in Palestine, Johansen's co-integration analysis method will be used. Results: Johansen's co-integration discovered that economic growth, foreign direct investment (FDI), and financial development have a favourable influence and a Long-Term association. Furthermore, there was a statistically significant relationship between stock market financial development indices and foreign direct investment (FDI). Practical Implications: This study adds to the literature by evaluating whether foreign direct investment (FDI) drives growth through financial development networks and other factors that can drive growth in addition to foreign direct investment (FDI). A well-developed financial market, according to research, will boost the impact of indirect foreign direct investment (FDI) on economic growth. By offering enough liquidity services that increase links between local and global investors, a well-developed stock market will promote capital accumulation activities and output growth. Originality/Value: This study is unique in that it examines the impact and relationship between economic growth and foreign direct investment (FDI) in Palestine on financial development, which must be considered in all developing countries' Long-Term development plans. Simultaneously, this study is a step ahead in examining the relationship between economic growth and foreign direct investment (FDI) in Palestine, as well as their primary function in financial development.

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